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Transcript of SCREENING CHAPTER 33 FINANCIAL AND BUDGETARY PROVISIONS … · SCREENING CHAPTER 33 FINANCIAL AND...
1 The Republic of TURKEY 4 October 2006
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
Country Session: The Republic of TURKEY
4 October 2006
2 The Republic of TURKEY 4 October 2006
CONTENTS
I. Overview of Budgetary and Accounting System
II. Own Resources and Administrative Infrastructure
A. Traditional Own Resources
B. Value Added Tax Resource
C. GNI Resource
III. Treasury System
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
3 The Republic of TURKEY 4 October 2006
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND
ACCOUNTING SYSTEM
Country Session: The Republic of TURKEY
4 October 2006
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
4 The Republic of TURKEY 4 October 2006
I. OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
A. Overview of Budgetary System
B. Monitoring Budget Revenues within Accounting System
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
5 The Republic of TURKEY 4 October 2006
A. OVERVIEW OF BUDGETARY SYSTEM
1. Legal Framework
2. Structure of General Government Budget
3. Budgetary Principles
4. Budgetary Process
5. Institutions Taking Part in Budgetary Process
6. Bilateral Financial Cooperation Project with Dutch Government
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FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
6 The Republic of TURKEY 4 October 2006
1. Legal Framework
- Constitution of the Republic of Turkey
- Public Financial Management and Control (PFMC) Law No.5018
- Budget Law
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FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
2. Structure of General Government Budget
(PFMC Law No. 5018)
SOCIAL SECURITY INSTITUTIONS
GENERAL GOVERNMENT
CENTRAL GOVERNMENT
LOCAL ADMINISTRATIONS
GENERAL BUDGET AGENCIES SPECIAL BUDGET AGENCIES
REGULATORY AND SUPERVISORY AGENCIES
7 The Republic of TURKEY 4 October 2006
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
3. Budgetary Principles
- Ensuring sustainable development with macroeconomic stability.
- Exercising spending power in compliance with relevant laws.
- Ensuring compliance with the policies, targets and priorities of
development plan and programs.
-Providing that specific revenues shall not be allocated to specific
expenditures.
- Ensuring transparency of public financial operations.
- Indicating all revenues and expenditures with their gross values.
8 The Republic of TURKEY 4 October 2006
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
3. Budgetary Principles (cont’d)
- Providing revenue and expenditure balance.
- Put into force only upon the approval of authorised bodies.
- Using classification in line with the international standards.
- Specifying appropriations towards realization of specific purposes.
- Preparing the budget along with the estimations for following two years.
- Ensuring clarity and fiscal transparency in reporting budget estimations
and budget implementation results.
9 The Republic of TURKEY 4 October 2006
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
4. Budgetary Process
- Adoption of Medium-Term Program by Council of Ministers (end of May)
- Medium-Term Fiscal Plan Decision of High Planning Council (until 15
June)
- Publication of Budget Call and Budget Preparation Guide, Investment
Circular and Investment Program Preparation Guide (end of June)
- Preparation and dispatchment of the budget proposals (end of July)
10 The Republic of TURKEY 4 October 2006
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
4. Budgetary Process (cont’d)
- Presenting budget draft law to Turkish Grand National Assembly
(TGNA) (no later than 75 days before the beginning of fiscal year)
- Central government budget draft law shall be submitted to TGNA along
with the budget estimations of local administrations and social security
institutions
- Discussion, adoption and approval of Budget Law in TGNA (before the
beginning of fiscal year - 1 January)
11 The Republic of TURKEY 4 October 2006
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
5. Institutions Taking Part in Budgetary Process
- Public Administrations
- Ministry of Finance
- Undersecretariat of State Planning Organization
- Undersecretariat of Treasury
- Turkish Grand National Assembly
12 The Republic of TURKEY 4 October 2006
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FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
13 The Republic of TURKEY
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6. Bilateral Financial Cooperation Project with Dutch
Government
MATRA/PSO- “Strengthening the Budget Planning and Preparation
Process” Project Beneficiary: General Directorate of Budget and Fiscal Control, Ministry of Finance Counterpart: Dutch Ministry of Finance Purpose: To strengthen the legal and institutional structure of DG Budget and Fiscal Control regarding budget preparation and planning process in order to increase the efficiency of budget policy and ensure compliance with EU Acquis Duration: 2 years (started in 2004, extended until 2007)
4 October 2006
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
14 The Republic of TURKEY 4 October 2006
1. Legal Framework
2. Technological Infrastructure
3. Monitoring Revenues in Accounting System
4. Budget Implementation Results
5. Pre-accession Financial Assistance 2005 Project
B. MONITORING BUDGET REVENUES WITHIN ACCOUNTING
SYSTEM
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FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
15 The Republic of TURKEY 4 October 2006
1. Legal Framework
a. PFMC Law No. 5018
- Accounting system enables producing standard financial reports and
final account.
- Public accounts are kept in a way to cover increases and decreases in
equity.
- Government accounting standards are determined by the Government
Accounting Standards Board in line with the international standards.
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16 The Republic of TURKEY
- Accrual Based Accounting System is adopted. - The system enables producing ESA tables related to general government by using bridge tables.
- Public revenues and expenditures are shown in the accounts of the fiscal year in which they are accrued. - Budget revenues are booked in the year they are collected while the budget expenditures are booked in the year they are paid.
- Detailed chart of accounts has been determined and put into force.
- Detailed chart of accounts ensures flexibility.
b. General Government Accounting Regulation
4 October 2006
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17 The Republic of TURKEY
i. Framework Chart of Accounts Balance Sheet Accounts
4 October 2006
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18 The Republic of TURKEY
i. Framework Chart of Accounts (Cont’d)
4 October 2006
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19 The Republic of TURKEY 4 October 2006
c. General Budget Accounting Regulation
- Regulates the implementation of the accounting system, the framework
of which is determined by the General Government Accounting
Regulation, by the public administrations within the scope of general
budget.
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FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
20 The Republic of TURKEY
a. Say2000i Web Based Accounting Office Automation System
- Say2000i is a system designed to computerize daily financial operations of 1109
accounting offices.
- All accounting office transactions can be monitored instantly and in detail from
the central organisation of Ministry of Finance General Directorate of Public
Accounts (GDPA).
- A computer based infrastructure has been developed to monitor the daily tasks
of accounting offices.
- A network is established to enable communication of accounting offices with
each other and GDPA. Through this network, GDPA is able to communicate with
other public institutions.
4 October 2006
2. Technological Infrastructure
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FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
21 The Republic of TURKEY
a. Say2000i Web Based Accounting Office Automation System (Cont’d)
4 October 2006
Technological Architecture
Accrual Unit
Accounting Offices 1109 (81 provinces, 850
districts)
Accrual Units
(39643)
Accounting Offices
GDPA 15 million daily-
wage/year
6000 users
Application servers
UNIX DB Server
Local Server Client PC
Client
PC
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22 The Republic of TURKEY
say2000i system
Control of title holdership
and transfer of pension
deductions in Prescription
Control System.
Transfer of appropriations
by General Directorate of
Budget and Fiscal Control
via electronic media.
Transfer of dispatch orders
to Ziraat Bank in electronic
media. Transfer of accounting records
of tax administrations into
electronic media.
Transfer of deductions of the Police
Benevolent Fund into salary
calculation, sending feedback on
deduction information.
Inquiry of customs
declarations and taxes that
are accrued. Realization of customs duty
collection automatically from
the bank account of the
taxpayer.
4 October 2006
b. Institutions Connected
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FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
23 The Republic of TURKEY
4 October 2006
Monthly
Charts
and
Trial Balances
GDPA
Budget
Implementation
Results
Accounting offices out
of say2000i system
MOTOP
VEDOP
Accounting Offices
within say2000i
system
MAIN
DATA
BASE
c. Data Flow Scheme
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3. Monitoring Revenues in Accounting System
a. Accrued Revenues
Pursuant to concerned
legislation, accrued revenues
shall be recorded, by the
accounting units, to auxiliary
accounts determined by
detailed chart of accounts of
“120 Account Regarding
Receivables from Revenues”.
4 October 2006
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25 The Republic of TURKEY
b. Overdue Receivables
Of the revenue receivables
recorded in the accounting
system, receivables that have
not been collected in due time
shall be recorded to “121
Account Regarding Receivables
from Prosecuted Revenues” and
the prosecution shall be initiated
in accordance with the related
legislation.
4 October 2006
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26 The Republic of TURKEY
c. Guaranteed Receivables
Pursuant to concerned
legislation, receivables deferred
and postponed against warranty
shall be written off from the
account 120 and recorded, by
the accounting units, to auxiliary
accounts determined by
detailed chart of accounts of
122 or 222 “Account Regarding
Deferred and Postponed
Revenues”.
4 October 2006
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27 The Republic of TURKEY
d. Collection of Budget Revenues
Receivables from revenues
recorded in related accrual
accounts shall be, when
collected, recorded to auxiliary
accounts determined by
detailed chart of accounts of
“800 Budget Revenues”, and
shall be booked by the
accounting unit.
4 October 2006
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FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
28 The Republic of TURKEY
e. Share Allocation From Budget Revenues
- Article 37 of the PFMC Law No. 5018; “The shares to be given to other administrations, institutions and
organisations from the taxes, levies, charges and other revenues collected
by public administrations within the scope of general government shall be
covered by the appropriations to be included in the budget of the public
administration collecting revenue for this purpose.”
- Article 227 of the General Budget Accounting Regulation; “ ‘363 Account for Public Administrations’ Shares’, pursuant to concerned
laws, shall be used to follow shares calculated to be transferred from
general budget revenues which have been collected in cash or on account
to local administrations, funds and the other institutions, and shares of the
other public administrations collected together with the general budget
revenues.”
4 October 2006
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29 The Republic of TURKEY
e. Share Allocation From Budget Revenues (Cont’d)
(Case Implementation)
4 October 2006
Budget Revenue
Records
Budget
Implementation
Monthly Results
Determination of the
Share to be Allocated
Sending Payment
Order
Payment
Transactions relating to budget revenue are booked by
accounting offices during the month.
Accounting records of the accounting offices are consolidated
and the budget implementation monthly results are reported.
The share to be allocated is determined by the Ministry of
Finance (GDPA) in accordance with the principles and
procedures set out in the concerned legislation.
The payment order document for the share determined by the
Ministry of Finance (GDPA) is prepared and sent to accounting
office.
The central accounting office transfers the amounts to the
accounts of those concerned upon supplying required cash
from the Undersecretariat of Treasury.
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30 The Republic of TURKEY
4 October 2006
- At the end of each month final results are attained upon completion and
finalization of month-end tasks, approximately until the 10th of the next
month, by all accounting offices.
- After submitting initial results, Public Accounts Monthly Bulletin,
containing more detailed tables, is prepared.
- The Public Accounts Bulletin is published by the Ministry of Finance
(GDPA) and put into service for users on www.muhasebat.gov.tr.
- On this web site, data and trend tables hitherto, since 1990, are also
presented together with the graphics.
4. Budget Implementation Results
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31 The Republic of TURKEY 4 October 2006
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5. Pre-accession Financial Assistance 2005 Project Project Title: Capacity Building for the Compilation of Accounting Data in All
Institutions and Agencies within General Government Sector in the Context
of e-Government.
Beneficiary: General Directorate of Public Accounts of the Turkish Ministry
of Finance.
Counterpart: Italian Ministry of Finance and Economy.
Purpose: To support the Ministry of Finance to improve its secondary
legislation on government accounting and reporting in order that the general
government agencies can issue timely, accurate, reliable, consistent and
analytically classified financial reports and statements on the basis of accrual
accounting and in line with internationally recognised, in particular EU
principles, standards, and practices.
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
32 The Republic of TURKEY 4 October 2006
-
THANK YOU FOR YOUR ATTENTION
SCREENING CHAPTER 33
FINANCIAL AND BUDGETARY PROVISIONS
AGENDA ITEM I: OVERVIEW OF BUDGETARY AND ACCOUNTING SYSTEM
AGENDA ITEM II:
OWN RESOURCES AND
ADMINISTRATIVE INFRASTRUCTURE
The Republic of TURKEY
4 October 2006
4 October 2006 The Republic of TURKEY 33
4 October 2006 The Republic of TURKEY 34
CONTENTS
A. Traditional Own Resources (TORs)
1. Agricultural Duties and Sugar Levies
2. Customs Duties
3. Administrative Structures Supporting TORs
B. Value Added Tax (VAT) Resource
C. GNI Resource
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AGENDA ITEM II: OWN RESOURCES AND ADMINISTRATIVE INFRASTRUCTURE
AGENDA ITEM II-A:
TRADITIONAL OWN RESOURCES (TORs)
The Republic of TURKEY
4 October 2006
4 October 2006 The Republic of TURKEY 35
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AGENDA ITEM II: OWN RESOURCES AND ADMINISTRATIVE INFRASTRUCTURE
36 The Republic of TURKEY 4 October 2006
A. Traditional Own Resources
1. Agricultural Duties and Sugar Levies
2. Customs Duties
3. Administrative Structures Supporting TORs
i. Turkish Sugar Authority
ii. Undersecretariat of Customs
a. Administrative Structure
b. Customs Methods and Operations
c. Modernisation of Customs
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37 The Republic of TURKEY 4 October 2006
1. Agricultural Duties and Sugar Levies
- In Turkey, agricultural products are not treated in any
means differently than any other products in terms of
customs and taxation.
- There are no sugar levies imposed on sugar producers.
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38 The Republic of TURKEY 4 October 2006
2. Customs Duties
- According to the Customs Law No. 4458;
“ ‘Customs Duties’ means all the export or import duties
applied to goods subject to the provisions in force.”
Currently there are no export duties applied in Turkey.
“ ‘Import Duties’ means customs duties and fiscal charges
having an effect equivalent to customs duties payable on
the importation of goods, import charges introduced under
the agricultural policy or under the specific arrangement
applicable to processed agricultural products.”
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2. Customs Duties (Cont’d)
- Import Regime Decree (No. 95/7606); O.G. 31st December 1995
- Import Regime Decree is classified under five lists:
· Agricultural products (List I )
· Industrial products (List II )
· Processed agricultural products (List III )
· Fish and fishery products (List IV )
· Suspension list (List V )
- Lists are renewed every year.
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2. Customs Duties (Cont’d)
Import Regime Decree is prepared by taking into account;
- World Trade Organization (WTO)
- Customs Union Between EU and Turkey
- Free trade agreements
- Preferential treatments (GSP)
- Specific needs and requirements of the agricultural sector
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3. Administrative Structures Supporting TORs
i. Turkish Sugar Authority
- Sugar Law No. 4634 (effective as of April 2001)
The purpose of this Law is to regulate the sugar regime, procedures and
principles in sugar production, conditions and methods of pricing and
marketing, regarding self-sufficiency and exports if necessary.
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i. Turkish Sugar Authority (Cont’d)
- Institutions Established by the Sugar Law:
- Turkish Sugar Authority: It regulates and controls the sugar sector. All
follow-up and supervision activities related to sugar sector are fulfilled by
the Turkish Sugar Authority. - Sugar Board: It is the decision-making body of the Turkish Sugar
Authority. One of the main duties of the Board is to determine and allocate
quotas.
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i. Turkish Sugar Authority (Cont’d)
Sugar Quotas - Quotas are classified as A and B.
A quota: corresponds to domestic demand.
B quota: corresponds to compulsory reserves.
- Sugar produced out of quotas is called as C sugar and it cannot be marketed
domestically.
- Quotas have been allocated since 2002/03 marketing year. Quota breakdown
for 2006/2007 marketing year is as follows:
Beet sugar : 2,107,000 tonnes
Starch based sugars : 234,100 tonnes
Total : 2,341,100 tonnes
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ii. Undersecretariat of Customs
a. Administrative Structure
- Organized under Prime Ministry (One State Minister Responsible).
- Consists of four main service units, four consultative and supervisory units
and four supporting units.
- About 1200 officers at the Central Administration.
- Responsible for the implementation of customs and foreign trade legislation
and carrying out customs enforcement services.
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a. Administrative Structure (Cont’d)
- Currently, two draft laws concerning the Turkish Customs Administration
are before the Turkish Grand National Assembly.
- These laws aim at:
- Reorganising the Customs Administration so as to achieve a
more efficient structure.
- Establishing representation structures of the Undersecretariat
abroad to carry out regular communications and relations with
the EU and other international organisations.
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a. Administrative Structure (Cont’d)
18 Regional Directorates 143 Customs & Customs Enforcement offices
(Total 6676 staff)
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a. Administrative Structure (Cont’d)
20 Land border gates
7 Railway border gates
42 Seaports
27 International airports
39 Inland Customs Offices
8 Free & Industrial Zones Customs Offices
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2003 2004 2005
(Bil.USD/~EUR) (Bil.USD/~EUR)
(Bil.USD/~EUR)
Export 47,3 / 36,9 63,1 / 49,2 73,0 / 56,9
Import 69,3 / 54 97,5 / 76 118,0 / 92
No. of declarations 2,850,147 3,247,871
3,513,322
No. of companies dealing with foreign trade ~90,000
Workload of Turkish Customs
a. Administrative Structure (Cont’d)
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Workload of Turkish Customs
a. Administrative Structure (Cont’d)
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2003 2004 2005
ENTRY EXIT ENTRY EXIT ENTRY EXIT
VESSELS 33,771 32,886 43,637 43,108 44,037 43,779
CONTAINERS 711,810 702,053 967,807 912,960 1,41,567 961,970
TIR CARNET 724,091 735,771 860,056 860,164 944,64 943,518
PASSENGERS 16,496,167 16,525,184 21,299,425 20,782,411 23,225,866 24,588,336
50 The Republic of TURKEY 4 October 2006
a. Administrative Structure (Cont’d)
Cooperation
Bilateral 43 Administrative Assistance Agreements
Regional
EU, SECI, ECO
International WCO, UNODC, INCB, IAEA, INTERPOL, D-8, ISEDAK
With the EU Institutions
Commission (Meetings, Seminars, Assistances, Customs 2007 ...) OLAF (Hosting Missions, Joint Missions, Administrative Assistance )
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a. Administrative Structure (Cont’d)
Customs Inspections and Investigations
- Customs Board of Investigation
- To interdict, prosecute and investigate the smuggling activities.
- To perform inspections, investigations and inquiries with regard
to all activities and transactions of the Undersecretariat and any affiliated
or associated organizations.
- Other Boards (Every Main Service Unit has its own Board of Controllers)
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b. Customs Methods and Operations 1. Risk Analysis and Assessment Process
Risk
Profiles
GREEN CHANNEL
YELLOW CHANNEL
Detailed
Declaration
(Import/Export)
Summary Declaration
(Manifest)
Random
BLUE CHANNEL
RED CHANNEL
SYSTEM VALIDATION/APPROVAL
SAD
4 October 2006
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53 The Republic of TURKEY
2. Tools and Modules for Risk Analysis
- Risk Analysis Module
- Risk Analysis
- Violation Data
- Line Determination and Direction
- Risk Profiles
- Customs Data Warehouse System
- Instruction (Message) Module
- Company’s Registration Info and Tax Number Module
- Customs Brokers Module
4 October 2006
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54 The Republic of TURKEY 4 October 2006
3. Verification of Declarations
Before release;
- examination of the documents or,
- examination of the goods and taking samples for analyses or
- detailed examination
After release; post clearance examination is possible for the goods which
belong to the Customs-Approved Persons who classified as A and B.
Verification of declarations is accomplished by Customs Inspection Officers
assigned by Computerized Customs Transaction (BILGE) System according to
the risk analysis.
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4. Simplified Procedure
- Omitting certain documents that have to be accompanied and certain
information that has to be recorded (incomplete declaration).
- Lodging a commercial or administrative document instead of the SAD
(simplified declaration).
- Entering to the related customs procedure by means of the entry in the
records.
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c. Modernisation of Customs
- Re-organization of customs administration.
- Development and implementation of IT systems for customs procedures.
- Harmonisation of customs legislation and procedures.
- BILGE (Automated Customs Procedure - import, export, transit etc. )
- GUMSIS (Customs Security Systems)
- GUVAS (Customs Data Warehouse System)
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1998
-200
2
Traditional Customs
(Paper-based)
e-Customs
(Paperless)
• Customs Law No. 1615
• Paper declaration
• Full physical control exercised not thoroughly
• Complicated manual procedures
• Classic approach in training
• Customs Law No. 4458 (in compliance with Community
Customs Code)
• Single Administrative Document
•Risk Analysis
•On-line procedures
• Computer literacy
• Expertise
• Foreign language
Automation
BİLGE
1. GIMOP- Project for Modernization of Customs Administration
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e-Confirmation
e-approval
e-Customs
e-Payment
58 The Republic of TURKEY 4 October 2006
• Internet Banking at customs offices (19 Banks)
•Payment at customs offices
•Sending export declarations to tax offices for tax refund
•Electronic access between tax offices and Customs
Traditional Customs
(Paper-based)
e-Customs
(Paperless)
•Need for going to Exports’ Union to enrol in •Enrolment electronically without
going to Exports’ Union
• Need for going to customs offices to register declarations
• Registration electronically
without going to customs offices
GUVAS • Delay in production of statistics
2. Transformation at Turkish Customs
2003
-200
5
• Daily production of statistics
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3. Software A customs software (BILGE) is developed, which is capable of carrying out all
procedures for customs clearance.
SUMMARY
DECLARATION
DETAILED
DECLARATION
(Imp/Exp/Tr) TARIFF ACCOUNTING
* Summary declaration
* Warehouse management
Discharge of Summary Declaration
Duties and Funds Access to Tariff
* Integrated tariff
* Reference tables
Taxes,documents,messages
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3. Software (Cont’d)
Methods of Submission of Declaration to BILGE
Traders can submit their declarations;
- through kiosks provided within the customs directorates
- via Internet
or
- from their own offices through EDI (Electronic Data Interchange)
messages.
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3. Software (Cont’d)
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Approximately 600 PCs are
available at 71 customs sites
for the use of traders.
62 The Republic of TURKEY 4 October 2006
CONTAINER
CONTROL
USERS CONTROL
WAREHOUSE
CONTROL
GUMSIS
RISK
ANALYSIS
TIR CARNET
BINDING TARIFF
GUVAS
BILGE
OTHER SOFTWARE INTEGRATED INTO BILGE
3. Software (Cont’d)
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3. Software (Cont’d)
As of December 2005
71
Customs Directorates
&
16
Regional Directorates
Automated
The number of annual import and export declarations are about 3.99 million
99.5 % of all transactions are under automation.
IT infrastructure of the remaining 54 customs directorates have been completed.
64 The Republic of TURKEY 4 October 2006
4. Customs Data Warehouse System (GUVAS)
- Management
- Performance measurement
- Foreign trade statistics analysis
- Anti-Smuggling Data Bank
- Valuation Data Bank
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5. Modernisation of Customs Laboratories - 2004
Central and Regional Level;
- construction (national financing).
- designing.
- furnishing.
- equipping.
- technical training for staff.
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6. EU Funded Projects
- 2003 - Modernisation of Turkish Customs I
- 2004 - Modernisation of Turkish Customs II
- 2006 - Modernisation of Turkish Customs III
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6. EU Funded Projects (Cont’d)
2003 - Modernisation of Turkish Customs-I
- Twinning - Capacity Building Project
- GUMSIS I - Border Control Project
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6. EU Funded Projects (Cont’d)
2004 - Modernisation of Turkish Customs-II
- Web-based BILGE
- ITMS (Pre-study/Integrated Tariff Management System)
- NCTS (Legislative Harmonisation/New Computerised Transit System)
- Risk Management
- Modernisation of Customs Laboratories
- Automated Customs Archives Center
- Enforcement
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6. EU Funded Projects (Cont’d)
2005 - Modernisation of Turkish Customs-III
- CCN/CSI (Common Communication Network/ Common
System Interface)
- ITMS (Integration to the system and twinning)
- NCTS (Integration to the system and twinning)
- GUMSIS II (Border Control Project)
- Capacity Building (Training)
- Capacity Building (Post Control)
70 The Republic of TURKEY 4 October 2006
THANK YOU FOR YOUR ATTENTION
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AGENDA ITEM II-B:
VALUE ADDED TAX (VAT) RESOURCE
Country Session: The Republic of TURKEY
4 October 2006
71 The Republic of TURKEY 4 October 2006
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B. VALUE ADDED TAX (VAT) RESOURCE
1. Legal Framework
2. Scope of VAT
3. Government Accounting
4. Domestic VAT Data
5. VAT Estimation
6. Statistics on VAT
7. Exchange of Information
8. Control System
9. Future Plans
10. EU Funded Projects
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1. Legal Framework
- VAT Law No. 3065.
(Official Gazette No 18563, dated 2 November 1984,
put into force on 1 January 1985)
- General consumption tax.
- Covers all goods and services.
- Applied to all stages from producer to consumer.
- Calculated on transaction value with related rate.
4 October 2006 The Republic of TURKEY
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SUPPLY OF
GOODS
SUPPLY OF
SERVICES
IMPORTS
TRANSACTIONS WITHIN THE SCOPE OF VAT
- Supply of goods and services referred to economic activities on continuing basis
in Turkey and all kinds of importation of goods to Turkey are in the scope of VAT.
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2. Scope of VAT
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Those supplying goods and services.
Those organising artistic and sports activities with the
participation of professional artists and sportsmen.
Those renting the goods and the rights such as real
estates, construction equipment, motor vehicle,
installations, rights in the nature of real estates, rights of
exploration and operation, rights of privilege, brand marks,
titles, copyrights.
TAXPAYER
Those importing goods or services.
Those who are registered as taxpayers on optional basis.
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2. Scope of VAT (Cont’d)
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2. Scope of VAT (Cont’d)
Taxation Period
- In principle taxation period is one month for the taxpayers and those liable for the
payment of tax.
- For some small transportation enterprises (under certain thresholds) and taxpayers
subject to simple procedure taxation (those who renounced from exemption)
taxation period is three months.
- In importation transactions, taxation period is the entry date of the goods to the
customs territory.
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2. Scope of VAT (Cont’d)
Tax Base
- The tax base is the value of transactions.
- In consideration of these transactions, value is the sum of money; benefit, services
and values that are represented by money and goods;
- received in any manner or
- the amount debted by buyers.
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2. Scope of VAT (Cont’d)
Items Included in Tax Base
- Transport, loading and unloading expenses made by the sellers.
- Costs of packaging.
- Insurance, commission and similar expenses.
- The elements such as taxes, duties, charges, shares and contributions to the funds.
- Miscellaneous incomes such as due date difference, price difference, interest and
premium.
- All benefits, services and assets provided under service or similar names.
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2. Scope of VAT (Cont’d)
Exclusions From Tax Base
- Discounts
- Shown separately in invoices and similar documents.
- Amount should be in compliance with the commercial practices.
- Calculated value added tax
are not included in tax base.
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Items Included in Tax Base in Imports
At the time of
importation any
kind of
• taxes
• duties
• charges and
• shares
paid.
Up to the registration date
of customs declaration
• Payments and other
expenditures that are not
taxed.
• Payments resulting from
price differences and
exchange rate differences.
+ +
• The customs value of the
goods.
• When the customs duties
are not collected on the base
of customs tax value or
goods are exempted from
customs duty, the CIF value.
• If the value of the goods is
unknown, the value of the
goods assessed by the
customs.
2. Scope of VAT (Cont’d)
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REDUCED VAT
RATES
1 %
8 %
2. Scope of VAT (Cont’d)
Rates (1/3)
- Currently three VAT rates are applied;
CURRENT
VAT RATES
GENERAL RATE
18 %
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2. Scope of VAT (Cont’d)
Rates (2/3)
- Goods and services subject to reduced rate are listed in Lists (I) and (II) annexed
to Cabinet Decree No. 2002/4480.
- The goods and services that are not listed in these lists are subject to general rate.
- 1% rate is applied on the goods and services under List (I).
- 8% rate is applied on the goods and services under List (II).
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2. Scope of VAT (Cont’d)
Rates (3/3)
- 8% or 18% rate is applied on retail delivery of some goods listed in List (I).
- Retail delivery;
“Sale of goods to those excluding VAT taxpayers selling goods as it is or after
processing and VAT taxpayers using the goods in their enterprises.”
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2. Scope of VAT (Cont’d)
Deductible VAT
- Taxpayers are allowed to deduct paid VAT;
- On deliveries of goods to them and provision of services for them
and
- On imported goods and services
from calculated VAT of the transactions.
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2. Scope of VAT (Cont’d)
Non-Deductible VAT (1/2)
Charged VAT can not be deducted for the following;
- Transactions that are not subject to VAT,
- Transactions that are exempted from VAT,
- Passenger cars (for those used in commercial activities such as rental are VAT
deductible).
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2. Scope of VAT (Cont’d)
Non-Deductible VAT (2/2)
- Wasted goods (except the goods wasted as a result of earth quakes, floods
and fires in the regions that are declared as force majeure by the Ministry of
Finance because of fire).
- Expenses that are not accepted in Personal Income Tax Law and Corporate Tax
Law.
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2. Scope of VAT (Cont’d)
Partial Tax Deduction
- According to Law, if transactions that are allowed to be deducted and that are not
allowed to be deducted are done by the same enterprise,
only the deductible portion of the VAT shall be subject to deduction.
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FULL EXEMPTIONS
- With right of deduction
- With right of refund
- VAT Law Art. 11, 13, 14
PARTIAL EXEMPTIONS
(no refund)
- With right of deduction
- Without right of deduction
- VAT Law Art. 17
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2. Scope of VAT (Cont’d)
Types of Exemptions
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Turkish VAT Exemption
Exemption for transit and international transportation (Art. 14)
– Services of travel agents are within the scope of Art. 14
Exemptions for social purposes (Art. 17/2)
– The supply of goods and services to official bodies responsible for
the construction, setting out and maintenance of cemeteries, graves
and monuments commmorating war dead are within the scope of
Art. 17/2
2. Scope of VAT (Cont’d)
Exemptions Regarding Compensations (1/2)
4 October 2006
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2. Scope of VAT (Cont’d) Exemptions Regarding Compensations (1/2)
The Republic of TURKEY
Turkish VAT Exemption
Exemption for water delivery of agricultural purposes, land reclamation
services and delivery of drinking water to villages (Art.17/4)
– Although the exemption in Annex Art. 12 covers all supply of water
by public authories, Turkish VAT system exempts only agricultural
water supplied by public authorities
Exemption for sea, air, and railway vehicles (Art. 13)
–The supply, modification, repair, maintenance, chartering and hiring
of aircraft is within the scope of Art.13
Exemption for national security expenses (Art.13)
–The supply, modification, repair and maintanence of warships is
within the scope of Art 13
4 October 2006
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2. Scope of VAT (Cont’d)
Renouncement from Exemption (1/2)
- Taxpayers carrying out transactions exempted from VAT
- by filing an application to the local tax administration,
- by specifying exempted transactions,
can demand the transactions to be taxed.
- Those taxpayers can not renounce from their tax liabilities up to 3 years.
91 The Republic of TURKEY 4 October 2006
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2. Scope of VAT (Cont’d)
Renouncement From Exemption (2/2)
However, renouncement from
- Exemption for cultural, educational and social purpose
exemptions (17/1,2) (excluding exempted associations and
charity foundations established for public interest)
and
- Exemption for delivery and services of military factories, navy
yards and workshops in compliance with their establishment
purpose(17/3-a)
and
- Exemption for transactions subject to banking and insurance
transactions tax (17/4-e)
is not possible. 92 The Republic of TURKEY 4 October 2006
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3. Government Accounting
- Established system of state accounts under the Ministry of Finance, General
Directorate of Public Accounts.
- Centralisation of accounting data.
- System accumulates the data on daily basis.
- Classification system of the VAT data:
- VAT on declaration basis.
- VAT on witholding basis.
- VAT on imports.
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3. Government Accounting (cont’d)
VAT ACCOUNTS IN GENERAL BUDGET
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General Budget Revenues
I- Taxes
1. Taxes on Income, Profits and Capital Gains
a) Income Tax
b) Corporation Tax
2. Taxes on Property
3. Domestic Taxes on Good and Services
a) Domestic VAT
Based on Declaration
Witholding Based
b) Excise Duties
c) Banking and Insurance Transaction Tax
d) Gambling Tax
e) Special Communication Tax
4. Taxes on International Trade and Transactions
a) Customs Duties
b) VAT on Imports
c) Other Taxes on International Trade and Transactions
5. Stamp Duties
6. Fees
7. Other Taxes not Elsewhere Classified
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95
4. Collection of VAT Data
The Republic of TURKEY
- Data collected by Revenue Administration and Undersecretariat of
Customs are unified under General Directorate of Public Accounts.
General
Directorate of
Public
Accounts
Undersecretariat
of Customs
Revenue
Administration
Domestic VAT VAT on Imports
4 October 2006
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4. Collection of VAT Data (Cont’d)
Domestic VAT Data
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TAX RETURNS
E-FILES VEDOP
- Given on the voluntary bases
- Usage ratio is continuously
increasing
- All information on regular tax returns
including distribution of transactions
by VAT rates
- Covers 54.7% of total VAT taxpayers
and 67.1% of the total VAT assessment
- VEDOP - Tax Offices Automation Project
- Sixteen different figures entered to the
VEDOP on the basis of tax returns given. (e.g.
VAT on exports, postponed tax)
- Covers 96.3% of the total VAT taxpayers (total
2,221,020 in Aug. 2006)
- Four main VAT data compiled from the
database (tax base, assessed VAT, deductions
and tax to be paid)
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5. VAT Estimation
- Simple estimation model is used currently by General Directorate of Revenue
Policies.
- The components of the model used are GNP deflator, development rate and
elasticity rate.
- Input-output estimation methods and simulation techniques are also made of
use in connection with Total Equilibrium Model.
- Estimations made by State Planning Organization regarding increase of
imports and currency exchange rates are taken into consideration for VAT
estimations on imports.
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5. VAT Estimation (Cont’d)
- Estimation process ends by the end of 15 October.
- Breaking down the transactions by VAT rate can be done on electronic tax
returns.
- There are separate accounts for the exemptions with refund of the tax paid at
the preceding stage (esp. refunds on exports).
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6. Statistics on VAT
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E-FILED VALUE ADDED TAX DATA
(VEDOP + EVDO)
(euro)
TERM BASE
CALCULATED
VAT DEDUCTION ASSESSMENT
Sept-Dec 2004 75.461.462.44 13.108.253.244 3.550.813.964 9.557.439.280
Jan - Dec 2005 326.221.802.819 51.635.120.545 45.628.494.343 6.006.626.202
Jan - July 2006 259.315.641.220 39.597.119.538 34.928.980.895 4.668.138.643
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2005 (euro)
Total Assessed Amount 22.380.038.746
Domestic VAT 10.325.818.431
VAT on Import 12.054.220.315
Total Collected Amount 20.461.407.964
Domestic VAT 8.407.187.649
VAT on Import 12.054.220.315
VAT Collected/GDP 6,23 %
Weighted Average Rate 15,83 %
Weighted Average Rate has
been calculated by dividing the
value of calculated VAT to the
total taxable amount of VAT, on
the basis of e-filed tax returns
concerning 2005.
6. Statistics on VAT (Cont’d) Weighted Average Rate
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7. Exchange of Information
- There is adequate capacity to keep the documents and data used in calculation
of the VAT base and to exchange information with the Commission.
- In case of a control request by the Commission, transfer of VAT data stored
under the VEDOP and VERIA systems will be done during the legal
harmonisation process.
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8. Control System
Audit Staff:
– Finance Inspectors
– Tax Inspectors
– Revenue Controllers
– Tax Auditors (Local)
VERIA: Data warehouse established for the use of audit and data analysis.
It compiles the data from various sources, including internal data from tax
returns and external data from financial institutions, public registries etc.
The most frequently audited area of VAT taxation is the rebates on exports.
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8. Control System (Cont’d)
VERIA
- Turkish Revenue Administration (TRA) started the VERIA Project
with VEDOP-2 in 2004 in order to meet the need for software
programs to analyse data for auditing purposes.
- It is the system of processing the collected data from operational
units, public institutions and external resources to cope with
unregistered economy and tax evasion.
- TRA is working on developing special programs to analyse data.
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8. Control System (Cont’d)
Aims of VERIA
- Generating a strong and effective management structure by using tecnological
infrastructure and audit system,
- Identifying unregistered taxpayers and transactions,
- Controlling and classifying declarations,
- Cross-checking taxpayers’ notifications,
- Determining profile of taxpayers and their tendency,
- Calculating sectoral averages,
- Producing statistical information and reports for auditing and management
purposes.
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8. Control System (Cont’d)
Data From Operational System (VEDOP)
Tax Returns
- Income Tax
- Corporation Tax
- Value Added Tax
- Witholding Tax
- Excise Duty
Other
- Central Taxpayer Registry Data
- Assessment and Collection of Revenues
- Vehicle Registry
- Information on Shareholders of Corporation and Members of Board of Directors.
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8. Control System (Cont’d)
Data Received From Banks and Financial Institutions
- Data on sales via POS and imprint machines and credit cards,
- Purchase / sale of all type of bills, bonds and other securities,
- Gold purchase / sale transactions,
- Repo / backward repo transactions,
- Forward transactions and option contracts.
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8. Control System (Cont’d)
Data Transfer Method and Period
Transfer Method
- Data is transfered through internet or by means of electronic media
instruments (CD or DVD).
- The system established to receive data through internet is called BTRANS.
Small-size information is mostly transfered via BTRANS.
- Large-size information is transfered on DVDs.
Transfer Frequencies
- Daily, Monthly, Quarterly, Annually.
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8. Control System (Cont’d)
Notifications (Form Ba and Form Bs) (1/2)
Taxpayers keeping their books on double entry method have to submit Form Ba and
Form Bs for purchases and sales of the previous year.
Form Ba Purchases over 30.000 TRY (≈ 18.180 €) from one
taxpayer in previous year.
Form Bs Sales over 30.000 TRY (≈ 18.180 €) to one taxpayer in
previous year.
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8. Control System (Cont’d)
Notifications (Form Ba and Form Bs) (2/2)
- Purchase and sale amounts of taxpayers are cross checked.
- In case of inconsistency, related data is controlled.
- After all controls, taxpayers declaring inconsistent amounts of sale and
purchase become subject to auditing.
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8. Control System (Cont’d)
VAT Audit Results
The Republic of TURKEY 4 October 2006
YEAR TOTAL
AUDIT
NUMBER
AUDITED
BASE (€)
BASE
DIFFERENCE(€)
2004 30.192 8.563.129.330 2.300.498.672
2005 22.203
9.382.983.285 1.170.740.493
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9. Future Plans
- Incorporating new information sources to the system.
- Integration with other databases.
- Generating effective analysis.
- Using all functions of e-Government to achieve fast data communication.
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AUDITING SUPPORT SYSTEM
Auditing Support System is a part
of the Management Information
System (MIS).
Auditing Units have on-line
connection to IT Centre.
Auditors have access to all
information about taxpayers
via Auditing Support System.
-Taxpayer Registry Data,
-Shareholders of corporations,
-Tax returns,
-Notifications,
-Collections,
-Tax refunds.
10. EU Funded Projects
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(MIS)
MANAGEMENT INFORMATION SYSTEM
Auditing Support System
FINANCE
INSPECTORS
TAX
INSPECTORS
REVENUE
CONTROLLERS
TAX AUDITORS
(LOCAL)
ALL AUDITING UNITS HAVE SEPARATE AUTOMATION SYSTEMS
Operational
System
Data
Warehouse
4 October 2006 The Republic of TURKEY
10. EU Funded Projects (Cont’d)
11
3
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10. EU Funded Projects (Cont’d)
Information Sharing within the System
Auditors have access to:
- all existing information about taxpayers through VEDOP,
- all previous reports about taxpayers,
- previous sector reports (model reports), with the approval of Report Control
Commission (ROK),
- legislation and regulations,
- internet.
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THANK YOU FOR YOUR ATTENTION
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AGENDA ITEM II: OWN RESOURCES AND ADMINISTRATIVE INFRASTRUCTURE
AGENDA ITEM II-C: GNI RESOURCE
Country Session: The Republic of TURKEY
4 October 2006
116 4 October 2006 The Republic of TURKEY
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1. Overview
2. Methodology
3. Responsible Institutions and Stakeholders
4. Future Plans
5. EU Funded Projects
C. GNI RESOURCE
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1. Overview
Quarterly and Annual Accounts
- Turkey has been involved in Eurostat work on national accounts since 2000.
- National Accounts (NA) figures have been compiled on a regular
quarterly basis since 1987.
- Gross Domestic Product (GDP) is estimated by production, expenditure and
income approaches.
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1. Overview (cont’d)
The system consists of the following elements:
- Value added by kind of economic activity at current and constant prices.
- Expenditure on GDP at current and constant prices.
- GDP by cost components at current prices.
Annual accounts are derived in two ways:
- as the sum of four quarters.
- in the framework of SUT/IOT compilation.
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2. Methodology
Production approach
- Value added by type of economic activity at producers’ prices.
- GDP at purchasers’ prices and GDP at factor cost.
- Base year is 1987.
- Value added is equal to output at producers’ prices.
- Intermediate consumption at purchasers’ prices.
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2. Methodology (cont’d)
Expenditure approach (1/2)
Private Final Consumption Expenditure
- Food and Beverages, Commodity Flow Method (CFM)
- Durable goods (CFM)
- Semi durable and non durable goods (CFM)
- Energy, transportation and communication
- Services
- Ownership of dwellings
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2. Methodology (cont’d)
Expenditure approach (2/2)
- Government Final Consumption Expenditure
- Gross Fixed Capital Formation (Public and Private)
- Machinery and Equipment (CFM)
- Building Construction (by Building Permits )
- Civil Engineering Works
- Change in stocks
- Exports of goods and services (-) Imports of goods and services
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2. Methodology (cont’d)
Income approach
- Other taxes and subsidies on production
- Compensation of employees by kind of economic activity
- Consumption of fixed capital (Perpetual Inventory Method)
- Operating surplus
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2. Methodology (cont’d)
Statistics for own resources (1/2)
- Monitoring own resources have two dimensions: VAT, GNI Inventory.
VAT: MoF data for taxes on products and production
GNI: GDP figures prepared by TURKSTAT
- Turkey has VAT implementation since 1984.
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2. Methodology (cont’d)
Statistics for own resources (2/2)
For GNI Inventory (Current situation)
There are two studies for description of Turkish National Accounts System:
- Short description of Quarterly NAs (QNA) for current situation
- Statistical System
- The architecture of NA
- Description of methodology used for calculation of GDP in the
latest main NA publication
- Data sources
- Used methods for estimations for QNA, including production, expenditure
and income approaches
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2. Methodology (cont’d)
Data sources
- Surveys
- Administrative registers
- Censuses
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2. Methodology (cont’d)
Classifications
- ISIC Rev.2
- Classification by Broad Economic Categories
- Classification by Broad Economic Categories (SITC Rev 3 ) is used to
classify commodities as consumer goods, intermediate and capital
- For 1998 SUT, ISIC Rev.3 / aggregated 97 industry groups
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2. Methodology (cont’d)
Dissemination
- Press release covers GNP in current and constant prices (1987)
- Quarterly NA data are published 90 days after end of reference quarter for
first and fourth quarters, while time lag is shortened to 70 days in the cases of
second and third quarters
1st quarter 30 June
2nd quarter 10 September
3rd quarter 10 December
4th quarter 31 March (following year)
- The last SUT (1998) was published in 2004
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3. Responsible Institutions and Stakeholders
- TURKSTAT is the responsible institution.
- Stakeholders are:
- Ministry of Finance
- State Planning Organization
- Central Bank
- Undersecretariat of Treasury
- Revenue Administration
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4. Future Plans
TURKSTAT is in the process of revising national accounts figures in
accordance with ESA 95.
After GDP revision in accordance with the ESA-95, it will be possible to prepare
a detailed GNI inventory reflecting current situtation.
Revision Studies for Quarterly National Accounts (1/2)
- Base year change from 1987 to 1998.
- From value added at producers prices to value added at basic prices.
- Chain-linked series, for constant price estimates (over the year techniques).
- Financial intermediation services indirectly measured (FISIM) according to
method 4a.
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4. Future Plans (cont’d)
Revision Studies for Quarterly National Accounts (2/2)
- Allocation of FISIM (by industries, households and general government)
- Central Bank output, as the sum of costs
- Backward estimates to 1998
- NACE Rev 1.1 and A31 classification for production approach
- COICOP for private household consumption
- Exhaustiveness for QNA based on Labor Force Survey and annual sector
statistics
- Using stratification method (by type of dwelling and heating system) for
ownership of dwelling
- Computer software for gross fixed capital formation
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5. EU Funded Projects
Upgrading the Statistical System of Turkey – Phase I
(National Accounts)
- Exhaustiveness of National Accounts
- Production Account for Non-Financial Corporations
- Estimation of Taxes on Production and Imports
- Private Household Consumption (PHC)
- Annual Supply and Use Tables and Input-Output Tables
- Rest of the World Account
- The Integration of Available Employment Data in the National Accounts
- Review the use of Annual Sources for Annual Estimates
- Gross Capital Formation, Capital Stock and Consumption of Fixed Capital
- Estimation Methods at Constant Prices
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5. EU Funded Projects (cont’d)
Upgrading the Statistical System of Turkey – Phase II (National Accounts)
- Government Finance Statistics
- Household Sector Accounts
- Regional Accounts
- SUT and IOT
- GCF, CS and Consumption of FC
- Financial Accounts by Sector and FBS
- Exhaustiveness of National Accounts
- Estimation Methods at Constant Prices
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THANK YOU FOR YOUR ATTENTION
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AGENDA ITEM III: TREASURY SYSTEM
Country Session: The Republic of TURKEY
4 October 2006
135 The Republic of TURKEY 4 October 2006
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THE TREASURY
- Undersecretariat of Treasury is the sole institution responsible for cash
management of central government.
- The Treasury receives revenues and performs payments through the
accounts held at the Central Bank as an agent bank.
137 The Republic of TURKEY 4 October 2006
THE TREASURY AND THE CENTRAL BANK
- Central Bank is a member of SWIFT system.
- 57,600 transactions are held on behalf of Treasury on average per year.
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THE TREASURY AND COMMERCIAL BANKS
- Commercial banks have been able to receive tax revenues
since 1996.
- 21 commercial banks and 4 financial intermediaries,
identified by the Ministry of Finance, are in charge of
collecting taxes.
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COMMERCIAL BANKS
- Members of the SWIFT system
- Internet based banking
- Widespread branches
- High capital adequacy ratio
- Integration with the international banking sector
- Adequate legislative infrastructure
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CONCLUSION
Due to their technical and institutional capacity, the Central Bank, on behalf
of the Treasury, and commercial banks in Turkey are capable of obtaining
and performing payments for the own resources system of the EU.
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